Quarterly report pursuant to Section 13 or 15(d)

Acquisitions (Tables)

v3.20.2
Acquisitions (Tables)
6 Months Ended
Jun. 30, 2020
Business Combinations [Abstract]  
Allocated Purchase Price The components of the purchase consideration and the preliminary allocation of purchase price as of June 30, 2020 are as follows:
Modern Message
(in thousands)
Fair value of purchase consideration:
Cash, net of cash acquired $ 62,749   
Deferred obligations, net 1,998   
Total fair value of purchase consideration $ 64,747   
Fair value of net assets acquired:
Restricted cash $ 3,248   
Accounts receivable 1,222   
Intangible assets:
Developed product technologies 8,700   
Client relationships 9,400   
Trade names 700   
Goodwill 49,337   
Other assets 426   
Accounts payable and accrued liabilities (886)  
Client deposits held in restricted accounts (3,450)  
Deferred revenue (198)  
Deferred tax liability, net (3,752)  
Total fair value of net assets acquired $ 64,747   
The allocation of each purchase price, including effects of measurement period adjustments recorded as of June 30, 2020, is as follows:
Date of Acquisition Aggregate Purchase Price Closing Cash Payment, Net of Cash Acquired Net Tangible Assets Acquired (Liabilities Assumed) Identified Intangible Assets Goodwill Recognized
(in thousands)
LeaseTerm Solutions (Final) Apr 2019 $ 26,512    $ 23,417    $ 587    $ 7,300    $ 18,625   
Hipercept (Provisional) Jul 2019 $ 28,353    $ 17,804    $ 149    $ 4,800    $ 23,404   
Simple Bills (Provisional) Jul 2019 $ 18,149    $ 14,875    $ (724)   $ 9,300    $ 9,573   
IMS (Provisional) Dec 2019 $ 55,738    $ 50,177    $ 30    $ 16,100    $ 39,608   
Buildium (Provisional) Dec 2019 $ 569,645    $ 566,241    $ (14,466)   $ 113,000    $ 471,111   
Schedule of Business Acquisitions Contingent Consideration
The following table presents changes in the Company’s deferred cash and stock obligations and contingent consideration for the six months ended June 30, 2020 and the year ended December 31, 2019:
Deferred Cash and Stock Obligations Contingent Consideration Total
(in thousands)
Balance at January 1, 2019 $ 52,142    $ 6,000    $ 58,142   
Additions, net of fair value discount 18,183    6,700    24,883   
Cash payments (25,215)   (5,963)   (31,178)  
Settlements through common stock issued (14,846)   —    (14,846)  
Accretion expense 1,540    58    1,598   
Change in fair value —    (259)   (259)  
Indemnification claims and other adjustments (57)   —    (57)  
Balance at December 31, 2019 31,747    6,536    38,283   
Additions, net of fair value discount 1,998    —    1,998   
Cash payments (2,172)   —    (2,172)  
Accretion expense 512    83    595   
Change in fair value —    (1,035)   (1,035)  
Indemnification claims and other adjustments 478    —    478   
Balance at June 30, 2020 $ 32,563    $ 5,584    $ 38,147   
Pro Forma Financial Information The following table presents unaudited pro forma results of operations for the three and six months ended June 30, 2020 and 2019, as if the aforementioned 2020 and 2019 acquisitions had occurred as of January 1, 2019 and 2018, respectively. The pro forma information includes the business combination accounting effects resulting from these acquisitions, including interest expense, tax expense or benefit, issuance of shares of our common stock, and additional amortization resulting from the valuation of amortizable intangible assets. We prepared the pro forma financial information for the combined entities for comparative purposes only, and it is not indicative of what actual results would have been if the acquisitions had occurred at the
beginning of the periods presented, or of future results.
  Three Months Ended June 30, 2020 Six Months Ended June 30, 2020
2020 Pro Forma 2019 Pro Forma 2020 Pro Forma 2019 Pro Forma
(unaudited)
(in thousands, except per share amounts)
Total revenue $ 285,607    $ 265,074    $ 562,762    $ 520,602   
Net income $ 11,750    $ 3,643    $ 17,801    $ 3,375   
Net income per share:
Basic $ 0.12    $ 0.04    $ 0.19    $ 0.04   
Diluted $ 0.12    $ 0.04    $ 0.18    $ 0.03